Project Report on Hyundai

Project Report On

MARKET ANALYSIS OF HYUNDAI MOTOR COMPANY

Submitted in partial fulfillment of the requirements for award of

Bachelor of Business Administration Of Guru Gobind Singh Indraprastha University, Delhi.

Submitted by  NISHANT BAGHEL  ______________________________________ Enrolment No: 11510601710 Of Ansal Institute of Technology Gurgaon Guided by Prof.: MS. Garima Chauhan

1

Certificate of Internal Guide

This is to certify that the project titled “Market Analysis of Hyundai Motor

Company” is a bonafide work carried out by NISHANT BAGHEL a

candidate for the award of Bachelor of Business Administration of

GGSIP University, Delhi under my guidance and direction.

Signature of guide Date: 16/04/13

Name: Ms Garima Chauhan

Place: Gurgaon

Designation: Sr. Lecturer Institute: AIT, Gurgaon

Signature of External guide/Examiner_______________________ Date:

Name:

Place:

Designation: Institute:

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ACKNOWLEDGEMENT

The present report is based on the study of “Market Analysis of Hyundai Motor Company”. First of all, I express my thanks to Ms. Garima Chauhan for his invaluable guidance and support. A special note of thanks goes to all the members of Reliance Industries Ltd., who have provide me valuable information Booklets and other required information’s which form the basis of this

report. I am very thankful to my m y parents for their support. I am also highly thankful to my parents, family members, relatives, friends and colleagues who  provided me their much needed support and inspiration and when required during the preparation of this project.

NISHANT BAGHEL (11510601710)

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CONTENTS

S.No

Topic

Page No.

1.

Introduction (Industrial Background) 

5-6

2

Introduction to the Problem

7-12



Introduction to the Topic



Objective of the Study



Purpose & Scope of the Study

3.

Profile of the Company

13-29

4.

Review of Literature

30-34

5.

Methodology

35-38

I. II.

Data Collection Method Sampling Plan

6.

Data Analysis and Interpretations

39-52

7.

Findings

53-55

8.

Conclusions & Recommendations

56-57

9.

Limitations

58-60

10.

Appendix

61-69



Annexure



Bibliography

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CHAPTER –  CHAPTER –  1  1

INTRODUCTION

5

HYUNDAI HYUNDAI MOTORS: COMPANY HISTORY

global conglomerate company, part of the Korean Chaebol, Hyundai  (Korean pronunciation is a global conglomerate that was founded in South in South Korea by Korea by one of the most famous businessmen in Korean history: Chung Ju-yung . The . The first Hyundai Company was founded in 1947 as a construction company. Two of the best-known Hyundai divisions are  are  Hyundai Motor Company,  Company,  the world's fourth largest automobile manufacturer by volume as of January 2011, and Hyundai and Hyundai Heavy Industries, the world's largest shipbuilder. Other companies currently or formerly controlled by members of Chung's extended family may be loosely referred to as a part of the Hyundai chaebol. Hyundai chaebol. In 1998 Hyundai bought Kia bought Kia Motors, the Motors, the oldest South Korean car company which had to file for  bankruptcy due to the th e 1997 Asian financial crisis. Kia crisis.  Kia is (as of 2011) somewhat independent of Hyundai motors, as Hyundai no longer owns an outright majority of Kia shares. Hyundai Group underwent a massive restructuring following the 1997 East Asian financial crisisand crisisand Chung Ju-yung's death in 2001. Chung was the CEO and directly in control of the company until the end of his life. Today many companies bearing the name Hyundai are not part of or legally connected to the Hyundai Group. These companies include Hyundai Kia Automotive Group, Hyundai Department Store Group, Hyundai Heavy Industries Group, and  and  Hyundai Development Group. However, all of the named companies are run by Chung's sons or their heirs.

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CHAPTER - 2

INTRODUCTION TO THE PROBLEM

7

INTRODUCTION INTRODUCTION TO THE TOPIC

Today’s society is warm with urbanization and demonstration effect. With a view towards it,

there are drastic changes coming up in all sectors even in the automobile Industries. The following information gives an insight about it.

In the present context the companies compan ies operate on the principle of natural n atural selection –  “Survival of The Fittest”. Only those companies will succeed which at best match to the current

environmental imperatives  –  those   those who can deliver what people are ready to buy, according to their convenience.

But real marketing does not involve the art of selling what the manufacturers make. Organizations gain market leadership by understanding consumer needs and finding solutions that delight consumers. If customer value and satisfaction are absent, no amount of promotion or selling can be compensating. Hence the aim of marketing is to build and manage.

There are four major, powerful themes that go to the heart of modern marketing theory and practice, they are:

1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS. 2. BUILDING AND MANAGING STRONG BRANDS. 3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE. 4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE.

What marketing is what it does and what it offers?

“Marketing is a social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and value with others.” “Marketing management is the process of planning and executing the conception, pricing,

 promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.” “Marketing offers some combination of products, services, information, or ex periences offered to

a market to satisfy a need or want” Marketing is an orderly and insightful process for thinking about and planning for markets. The process starts with researching the market place to 8

understand its dynamics. The marketer uses research methodologies to identify opportunities, that is, to find individuals all groups of people with unmet needs or latent interest in some  products or service. The marketing process consists of the following: 1. Analyzing marketing opportunities. 2. Developing marketing strategies. 3. Planning marketing programs 4. Managing the marketing efforts.

Before taking any decision and achieving the goals, it has to make analysis of what to do, how to do, when to do, where to do and who is to do it. This is nothing but strategic planning. Goals indicate what a business unit wants to achieve whereas strategy is how to get there.

Marketing strategies in simple terms are the complete and unbeatable plans designed specifically for attaining the marketing objectives of the firm. Marketing can be called as a game plan for achieving its goals. Strategy choice will depend on whether the firm or the marketer plays the following roles: 

Market leader



A challenger



A follower



A niche

The identification of objectives, both in quantitative quan titative and qualitative terms, is an essential  backdrop to strategy formulation. Goals have a quality and time frame attached to them. These are typically spelt out in terms of financial return, market share, market presence, etc. Thus, the concept of market oriented strategic planning arises with the link between the products the manufacturer is dealing in and the market conditions. In this direction, our study deals only with the marketing strategies i.e. promotional strategies of the Ford automotives.

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OBJECTIVE OF THE STUDY

A market analysis of the HYUNDAI car with the respect to its COMPETETOR like MARUTI SUZUKI, TATA etc.

Sub-objectives: 

To identify the critical factors, considered by the prospective customers while  purchasing the Hyundai car.



To identify the perception of the existing users of the Hyundai motors.



To find the market share (distribution) of the Hyundai motors.



To find the market analysis trough SWOT ANALYSIS, PRODUCT SPECIFICATION AND MARKET SEGMENTATION.

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PURPOSE FOR THE STUDY



To know the all market competitor of the product.



To understand the all features of product, which I should be promote.





To study history growth and development of HYUNDAI H YUNDAI MOTOR in Hyderabad. To provide important lead on customer convenience conv enience front to HYUNDAI MOTOR, which would be helpful in making increase the sell?

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SCOPE OF THE STUDY



The study is conducted for developing the mutual relationship with all private and nationalized banks.



The study covers the customer’s perceptions and their most used product.



The study covers the customer’s perception for auto finance.



The study covers the bankers perception, which automotive company they are sanctioning more.



The study was conducted to approach the customer those who are approaching for car loan.

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CHAPTER –  CHAPTER –  3  3 PROFILE OF THE COMPANY

13

HYUNDAI HYUNDAI MOTORS: COMPANY PROFILE

Hyundai Motor Company has a presence in 168 nations. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, S. Korea and is the second largest and the fastest growing car manufacturer in India. The Korean company set up its subsidiary in India in 1996. HMIL’s fully integrated state-of-the-

art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. The company is investing an additional US$ 220 Mn to expand capacity at this plant to 250,000 units a year in line with its recent designation as HMC’s global export hub for small cars and to cater to its upcoming product launches India. HMIL presently markets over 18 variants of passenger cars across four models, the Santro in the B segment, the Accent in the C segment, the Sonata in the E segment and the Terracan in the SUV segment. The company recorded combined sales of 150,741 units during calendar year 2003 with both Accent & Santro emerging leaders in their respective segments. The company’s newest launch in India is the Accent Getz in B segment HMIL was recently awarded the benchmark ISO 14001 certification for its sustainable environment management practices. Hyundai Motors is planning to shift certain research and development (R&D) facilities from Korea and while basic R& D functions will remain in Korea, India will become the R&D hub in specific areas such as engine, body design or transmission, taking advantage of the available technology skill in India. HMIL has sold over 500,000 cars in a record time of just over 5 years since commencement of commercial production in September 1998 and is all set to emerge as one of the largest exporters of passenger cars and components out of India.

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Between 2003 and 2006 the company will invest $300 million in its Indian operations. It will increase the assembly line as well as the capacity from the present level of 1.2 lakh to 1.5 lakh units in the next fiscal and to 2 lakh units between mid-2003 and 2006. Hyundai is looking at exports of 40,000 units, mostly to Europe, from India. The planned capital infusion will also be used to expand capacities and fund product launch, the multi-purpose vehicle Carens. The Carens is expected to be introduced with a price tag of about Rs 10 lakh. The firm is also exploring the feasibility of rolling out another sports utility vehicle Santa-Fe. The company is likely to emerge as one of the top five auto giants in the world in the future.

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Hyundai In India

Hyundai Motor India Limited is currently the second largest carmaker after  Maruti  Maruti Suzuki and largest auto exporter in India. It is making India the global manufacturing base for small cars. Hyundai sells several models in India, the most popular being the Santro the Santro Xing, i10 Xing, i10 and the i20. the i20. Other models include Getz include Getz Prime, Accent, Prime, Accent, Terracan,  Terracan, second  second generation Verna, generation Verna, Tucson,  Tucson, Santa  Santa Fe and the Sonata the Sonata Transform. Hyundai Transform. Hyundai has two manufacturing plants in India located at Sriperumbudur in the Indian state of  Tamil  Tamil Nadu. Both Nadu. Both plants have a combined annual capacity of 600,000 units.In the year 2007 Hyundai opened its R&D facility in Hyderabad H yderabad Andhra  pradesh, employing now nearly 450 engineers from different parts of the country.Basically the Hyundai Motor India Engineering (HMIE) gives technical & engineering en gineering support in Vehicle development and CAD & CAE support to Hyundai's main R&D center in Namyang Korea. In 2010, Hyundai started its design activities at Hyderabad R&D R &D Center with Styling, Digital Design & Skin CAD Teams. South Korean car maker Hyundai, H yundai, which as per reports is also world’s fastest growing automaker

and fourth largest car manufacturer across the globe, has launched a new car, Hyundai EON in October in India. India.[45] Eon is an entry-level car but at a t the same time it is very spacious with a large  boot. The car has 814 cc engine, promising to deliver the mileage of over 20 km per litre. The new Hyundai’s small car is sure to stir competition in the under Rs 3 lakh price range. Hyundai

EON price has kept its price around Rs 2.5 lakh.

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SALES OF HYUNDAI MOTORS LTD. IN INDIA I NDIA

In year 2010 HMIL grew by b y 7.8% cumulatively registering total sales of 6,03,819 units as against 5,59,880 units of 2009 with domestic sales surging by 23.1% over 2009. Domestic sales accounted for 3,56,717 units in 2010 as against 2,89,863 in the year 2009. Overseas sales accounted for 2,47,102 units as against 2,70,017 units in 2009 which reflects a decline of 8.5% for the calendar year 2010.

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PRODUCT CATEGORY AND ITS DIMENSION

1) SMALL SEGMENT CARS: HYUNDAI - SANTRO XING

LENGTH

3565mm

BREATH

1525mm

HEIGHT

1590mm

WHEEL BASE

2380mm

CURB WEIGHT

854kg(MT), 868kg(AT)

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HYUNDAI –  HYUNDAI –  i10  i10

LENGTH

3565mm

BREATH

1595mm

HEIGHT

1550mm

WHEEL BASE

2380mm

CURB WEIGHT

1010kg

19

HYUNDAI - Eon

LENGTH

3495mm

BREATH

1595mm

HEIGHT

1550mm

WHEEL BASE

2380mm

CURB WEIGHT

940kg

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2) LARGE SEGMENT CARS (SUV’s): (SUV’s): HYUNDAI –  HYUNDAI – SANTA SANTA FE

LENGTH

4676mm

BREATH

1615mm

HEIGHT

1725mm

WHEEL BASE

2700mm

CURB WEIGHT

1676kg

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HYUNDAI –  HYUNDAI –  TUCSON  TUCSON

LENGTH

4400mm

BREATH

1820mm

HEIGHT

1685mm

WHEEL BASE

2640mm

CURB WEIGHT

1440kg

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SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning  process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm’s resources and

capabilities to the competitive environment in which it operates. AS such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT Analysis Framework Environmental Scan /

\

Internal Analysis /

External Analysis

\

/

Strengths Weaknesses Opportunities

\ Threat

! SWOT Matrix

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STRENGTHS: A firm’s strengths are its resources and capabilities that can be used as a basis for developing a

competitive advantage Examples of such strengths of HYUNDAI:



Hyundai have a good reputation among customers.



Well established co. since 1993



Trusted brand in INDIA.



Strong distribution network all over India.



It has the maximum number of service station all over. ov er.



Exclusive access to high grade natural resources.

WEAKNESSES: The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses;



Lack of patent protection.



The company has low brand recognition in A segment and passenger car.



High cost structure.



Lack of access to the best natural resources.



Lack of access to provide the services for dealing of second hand cars.

In some case, a weakness maybe the flip side of a strength . Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength stren gth that 24

competitors do not share, it also may be a considered a weakness if the large larg e investment in manufacturing capacity prevents the firm from reacting quickly to c hanges in the strategic environment.

Opportunities The external environmental analysis may reveal certain c ertain new opportunities for profit and growth. Some examples of such Opportunities include;



An unfulfilled customer need.



Arrival of new technologies.





Loosening of regulations.

Removal of international trade barriers.

Threats: Changes in the external environmental also may present threats to the firm. Some examples ex amples of such threats include;



Shifts in consumer tastes away from the firms products.



Emergence of substitute products.





 New regulations.

Increased trade barriers.

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The SWOT Matrix

A firm should not necessarily pursue the more lucrative opportunities. op portunities. Rather, it may have a  better chance at developing a competitive advantage by identifying a fit between the firm’s

strengths and upcoming opportunities. In some cases , the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. opp ortunity.

To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below;

SWOT / TOWS Matrix

Strengths

Weaknesses

Opportunities

S-O strategies

W-O strategies

Threats

S-T strategies

W-T strategies



S-O strategies pursue opportunities that are a good fit to the company s strengths.



W-O strategies overcome weaknesses to pursue opportunities.



S-T strategies identify ways that the firm can use its strengths strengths to reduce its vulnerability to external threats.



W-T strategies establish a defensive  plan to prevent the firm’s weaknesses from making it highly susceptible to external threats

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MARKET STRATEGY IMPLEMENTATON

1) Product development with vendors : In case product development part a team of engineers would be talking to its major vendors for fo r reducing the cost of equipments supplied  by them. These vendors are the major suppliers of Hyundai components such as Deep Hyundai, Hans and Himgiri etc . 2) Advertising: The advertising may involve the process of advertisements on Television, Radio, Newspaper, Auto Magazines and events like Auto Expo

a) T.V. Advertising ; T.V. advertising may involve the advertisement at peck p eck hours of television viewing or during the cricket match time in the slog over which in turn may lead to maximize exposure and thus maximum max imum impact on final buyers.

 b) Advertising in news paper (twice in weak ); The concept of advertising on newspaper may increase the sale since the newspaper would be able to explain ex plain the characteristics and features of cars, because it is an easy way to reaching the decision makers and thus in turn may directly influence their decision.

c) Advertising on Radio;  with FM catching more and more popularity amongst people especially people love to listen to FM while driving. Thus this could be another mean of influencing the prospects for services like True Value at the time of 1hour in the morning and 1 hour in the evening evenin g when the people are actually traveling towards their office or coming come back.

d) Auto Magazines (monthly) and Auto expo (yearly);  The Company would advertise on auto magazine like Auto cars, Motoring etc where entire information on product and newer features would be explained. The cover page or back page advertisement would be used for PRODUCT COMMUNICATION

. 27

3

Celebrity Endorsement; This entirely depends on the company’s compan y’s policy whether they would like to spend a fixed amount (which may depending upon the  personality). The celebrity would be the Brand Ambassador for the company like Actor SHAH RUKH KHAN is the Brand Ambassador for Hyundai Santro.

4

Incentives / Penalty on meeting a sales target: The company would work with dealers with the policy of carrot and stick which may involve incentives like a foreign tour  package, gifts and monetary incentives such as increased margin for meeting a sales target or working with dealers on contractual basis rather than a permanent basis if they are not able to reach sales over a period of time.

5 Financing through various Banks : currently Hyundai has its tie up with SBI financing and the process is limited to getting the car financed through 9000 branches which the firm would go out to increase along with the th e financing tie ups with other banks ba nks in a way increasing the reach and more customers. For rural market a finance scheme for farmers would wou ld provide for installments to coincide with the times when his crop is sold in the market .i.e. CROP CYCLE (paid every ev ery six months after the rabi and kharif harvests).

6 Assemble line modifications modifications: Since in A1 and A2 segments there is need of change in the design and specification this would involve change in assembly line.

7 Vehicle for corporate: Their N2N feet management system would be used for this purpose in which their main purpose would be to finance the vehicles for corporate.

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Achievements Achievements of Hyundai Motors India Ltd :

 Hyundai Santro Crosses the Million Mark ; HMIL achieved yet another mile stone by selling more than 1 million Santro in the domestic and Export market since its introduction in 1998. 19 98. Santro is India s first high Technology compact car. Commenting on the achievement, H.S. Lheem, MD, HMIL, said,” This new record of selling 1 million Santro exemplifies the unmatched equity of

the Santro brand across the world. Santro S antro offers refined ride, impressive fuel economy and comfortable interiors.

care clinic; HMIL, recently Conducted its second  Hyundai’s 2nd all India free car care nationwide free car care clinic campaign from Jan29thJan29 th- Feb 11th 07 at over 310 Hyundai dealer workshops across the country. The clinic was conducted con ducted to facilitate Hyundai car better and at a reasonable cost. The Free Car Care Clinic offered a comprehensive 80-point thorough examination ex amination of the engine compartment, under body, AC, body, interior and exterior etc. Customers also availed free car wash and attractive discounts ranging between 5to20 percent with a special discount on the Emblem. Special discounts were offered on service merchandising like engine flush, anti- rust coating, engine de-carbonization and car polish.

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CHAPTER-4 REVIEW OF LITERATURE

30

AN OVERVIEW: AUTOMOBILE INDUSTRY IN INDIA

The automobile industry is one of the largest in terms of employment and value addition. As a leader in product and process technologies for the manufacturing sector, it has been accepted as one of the important drivers of economic growth. Global trends indicated that the auto market has moved from the growth and development phase to the consolidation phase. The Japanese automobile majors, besides technological innovations, implemented some modern management philosophies, which were gradually adopted by the automobile industry of the United States and other European countries. Currently, almost fifty  percent of the global passenger car production comes from three countries, viz., the US (20%), Japan (19%) and Germany (12%). In the commercial vehicle category, the share of the US is 46  per cent followed by Japan (11%) and China (9%). In both these categories cat egories of vehicles, India’s

share in the total world production is 1 per cent. The first motorcar on the streets of India was seen in 1898. Then for the next fifty years, cars were imported to satisfy domestic demand. Between 1910 and 20's the automobile industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by b y assembling 'Dodge Desoto' and 'Plymouth' cars at its Kurla plant. p lant. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949. Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. ruled Indian roads for many of the initial years In 1952 the GOI asked assembly plants, which did not have plans to set up manufacturing facilities, to shut operations. As a result General Motors, Ford and other assemblers closed operations in the country. The year was 1954 and this decision of the government marked a turning point in the history of the Indian car industry. The GOI also had a say in what type of vehicle each manufacturer should make. Therefore, each product was safely cocooned in its own segment with no fears of any impending competition. Also, no new entrant was allowed even 31

though they had plans of a full-fledged manufacturing program. The restrictive set of policies was chiefly aimed at building an indigenous auto industry. However, the restrictions on foreign collaborations led to limitations on import of technology through technical agreements. In the absence of adequate technology and purchasing power, the car industry grew at a snail's pace in the 60’s.  The demand for cars in 1960 was to the tune of 15,714. In the next two decades the

number increased to 30,989 i.e. a CAGR of only 3.5 per cent. In the early 80's, The GOI entered the car business, with a 74% Stake in Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan. The very face of the industry was changed for ever in 1983 with the entry of public sector Maruti Udyog in a joint venture with the Suzuki Corporation of Japan. Car sales grew by 42 per cent in 1985 after Maruti 800 was launched. Thanks to MUL car sales registered a CAGR of 18.6 per cent i.e. from 1981 to 1990. In 1985, the GOI announced its famous broad banding policy which gave new licenses to broad groups of automotive products like two and four-wheeled vehicles. Though a liberal move, the licensing system was still very much intact. MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry. The car was launched as a "peoples car" with a price tag of Rs40, 000. This changed the industry's profile dramatically. Maruti 800 was well accepted  by middle-income families in the country and its sales increased from 1,200 units in FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down to 189,184 units, due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid-sized cars. The company has single handedly driven the sales of cars in the country from 45,000 in FY84 to 409,951 cars by FY2000, cornering around 79.6% market share. With increasing competition from new entrants, this market share has plummeted to almost 62% in FY2000. A brief 3-year downturn till 1993 and car sales bounced back to register a 17 per cent growth rate in 1997.Since then, the economy slumped into recession and sales of cars remained quite stagnant FY97 and FY99. The Financial year 2000 has, however, been the turnaround year for the Auto industry with the economy looking up. The industry achieved volume sales of 638,815 units as against 409,951 units in 1999, thus, crossing the half million mark for the first time. Therefore, at present, the CAGR between FY96 and FY2000 stands at 16.6 per cent. (Former finance minister, Man Mohan Singh's liberalization policy was major driver which led to 32

industry undergoing this complete transformation.) Overwhelmed by newer models from new and existing players had to an impressive shift from a constrained supply situation to a surplus one. Within the past decade, about 30 models have entered the Indian market with a number of models still awaiting launch. The de-licensing of auto industry in 1993 opened the gates to a virtual flood of international automakers into the country with an idea to tap the large population  base of 950mn people. Also the lifting of quantitative restrictions on imports by the recent policy is expected to add up to the flurry of foreign cars in to the country. Many companies have entered the car manufacturing sector, to tap the middle and premium end of car industry. The new entrants are Daewoo (Matiz), Telco (Indica) and Hyundai (Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and Fiat have entered the mid-sized car segment and Mercedes-Benz is in the premium end of market. Car manufacturers like Malaysia based Proton are also in line to hit the Indian ramp. The Indian passenger car industry is relatively recent in origins. Except the ubiquitous Ambassador and the Premier Pad minis there was not much moving around with an Indian tag. The restrictive policies of the Indian government did not allow foreign players to set shop in India and in the absence of adequate technology and purchasing power it resulted in the slow growth of the industry even after a long time since independence. The demand for cars increased from 15,714 in FY60 to 30,989 in FY80 at a CAGR of only 3.5%. The entry of Maruti Udyog Ltd, a GoI JV with Suzuki of Japan, in 1983 with a so-called "peoples" car and a more favorable  policy framework resulted in a CAGR of 18.6% in car sales from FY81-FY90. After witnessing a downturn from FY90 to FY93, car sales bounced back to register 17% growth rate till FY97. Since then, the economy slumped into recession and this affected the growth of the automobile industry as a whole. As a result car sales remained almost stagnant in the period  between FY97 and FY99. However, with the revival in the economy, FY2000 turned out to be a significant year for the industry in which it recorded volume sales of 638,815 units as against against 409,951 units in the previous year. Thus, the CAGR for the period FY96 - FY2000 stands at 16.6%. On the basis of price, the Indian car industry can be classified into economy or the 'small' car (up to Rs0.3mn), mid-size (Rs0.3-0.5mn), luxury car (Rs0.5-1mn) and super luxury car segments

33

(above Rs1mn). Economy segment dominates with a market share of about 80% of total car sales in FY2000. Taking into consideration the rise in expendable income levels and necessity of personal transportation as a result of inefficient or deficient public transportation means, the demand for cars is expected to increase. FY2000 was an indicator of the growth phase ph ase to follow, registering a 20-year high growth rate of 56%. The second highest growth was recorded in 1985 at 42% when Maruti had entered the market. Riding on the popularity of the small car segment, coupled with the boost in sales of the mid size segment, total sales grew by 56%. However, such high level of growth is highly unsustainable in the long run given the fact that there is an as yet unutilized capacity in the industry. This would make the question of survival important and carmakers would have to play their cards well to remain in contention. Moreover, sales growth in FY2000 was calculated on a lower base of FY99. Exports are expected to increase as a result of over capacity in the domestic car industry and the government's policy to bring in a more liberal regime on the foreign exchange front. The flood of new entrants into the car industry as a result of liberalization has led to a complete transformation of the sector. The car segment is flooded with new models from new and existing  players, a visible shift from a constrained supply suppl y situation to a surplus. In the last decade or so, as many as 30 models have invaded the market making it a case of embarrassment of riches. Moreover a lot many models are waiting to hit the ramp by the end of the year. The capacity of car production has increased substantially in the last three years and is expected to grow manifold in the coming years. The low capacity utilization will force a marketing war  between the car manufacturers. The US$ 6.8 billion Indian car c ar industry has registered a CAGR of 17% between 1998-2003 and is projected by ACMA (Auto Components Manufacturers Association of India) to grow at a 15% CAGR till fiscal 2012. The car buyer will be the major  beneficiary of the marketing war in the segment as they will be able to get technologically better b etter  products at good terms and conditions. But with an expected shake out, the threat of discontinuation of a model is also high.

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CHAPTER 5

METHODOLOGY

35

RESEARCH METHODOLOGY

MARKETING RESEARCH:

Definition of marketing research as approved as by the board of directors of the association of American marketing association is: “Marketing research is the function which links the customer

and public to the marketer through information  –   information used to identity and define marketing opportunities and problems generate define and understanding of marketing as  process”. Simply, marketing research is the systematic design collection analysis and reporting

of data finding relevant to a specific marketing situation facing the company. Carefully planning through all stages of the research is a necessity. Objectivity in research is all-important. The heart of scientific method is the objective gathering of the information. The function as marketing research within the company as to provide the information and analytical necessary for effective.



Planning of the future marketing activity.



Control of the marketing operation in the present.



Evaluation of marketing results.

A research may undertake any of the three types of research investigation depending upon the  problem. These types of research included: 1. Basic research 2. Applied research 3. Designated Fact Gathering

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APPLIED RESEARCH: It is attempt to apply the various marketing technique, which have been developed as research, first and later on they become applied research techniques. It is on attempt to apply the basic  principles and existing knowledge for the purpose of solving operational problems.

STEPS IN MARKETING RESEARCH :

Marketing research process can be out through following steps. Define the problems and research objectives Develops the research plan Collect the information Analysis and interpretation Present the finding.

PRIMARY DATA:

It consists of information collected for the specific purpose, survey research was used and he all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been collected for another purpose. Any researcher begins the research work by first going through secondary data. Secondary data includes the information available with company. It may be the findings of research previously done in the field. Secondary data can also be collected from the magazines, news papers, internet other service conducted by researchers.

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METHODS OF DATA COLLECTION:

The study includes in it the data collected through both primary   and secondary   sources. Primary data is collected with the help of structured questionnaire and personal meeting. Questionnaire is administered on the sample respondents. However there are certain cases where  personal interactive method is followed with customers to find find the satisfaction level.

RESEARCH METHODOLOGY:

The respondents are the car owner of any company or intender of car and different banks managers of different branches. The survey was carried in my collage with the sample size of 100. The survey was carried out with the help of a structured questionnaire, which help in accomplishing the research objective. The respondents by means of personal interview administer during the event shows this structured questionnaire.

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CHAPTER 6 DATA ANALYSIS & INTERPRETATION

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DATA ANALYSIS

FOR EXISTING CUSTOMER OF CARS

Qu.-1 Which car do you own?

20 18 16 14 12

maruti zen santro zing

10 8

tataindica

6 4

fiat palio

2 0 1st Qtr

2nd Qtr

3rd Qtr

4th Qtr  

This first question was in the questionnaire to know, which person is having which car? With the help of this question we can know kno w about the distribution of B segment car c ar in Dwarka region. In the answer of this question 15 people said Maruti Zen, Zen, 20 people said for Santro Zing. Zing. 5 people said Fiat palio. 10 people said Indica. Indica. IN this question we see that santro and Zen are highly distributed in the Dwarka region.

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Qu.-2 Why did you buy this car?

Reasons to buy car

reduce the risk of accident   e    l   p   o   e   p   e    h    t    f   o  .   o   n

35 29

30

increase in the income

25 20 15 10

17

to get comfort

17

12 8

7

5

10

change in life style and personality family need

0 options

to cover distance in less time

This question was there in the questionnaire to check why did person buy the car? What was the need to buy the car? In the response 29 people said because of “family need”. They bought the

car because of the need of the family. Then after 17 people said, “to get comfort” and “increase in the income”. So, it can be concluded that most of the people bought the car because of need of

family and get comfort.

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.Qu.-3 Why did you purchase this car? I analysis this question on each and every car, which was opted by the respondents. Taking Hyundai Santro Xing first, 12 people said they bought Santro Xing, because of advance quality. 7 people choose Santro because of value for money. So, it can be concluded that Santro is  providing value for money to the customer and it is having advance technology.

Satro Zing

14   e    l   p   o   e   p    f   o  .   o   n

12

advance technology

10

after sales service

8

company name

6

no. of service station

4

value for money

2

easy availability of spare parts

0 Factors

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Qu.-4 Source of finance of your existing car is?

Source of finance

Financial institutes 5% company loan own resourse 25% 40% bank loan 30%

own resourse bank loan company loan Financial institutes

In this question I asked about their source of finance. In replied 40% person said own resources, 30 % said bank loan, and 25 % said company loan and remaining for i.e., 5% for institutional loan. So it can be concluded that bank loan among people is most preferred after own recourses.

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Qu.-5 From where you gathered information about the car?

Imformation about the car

  e    l   p   o   e   p   e   y    h    t    f   o  .   o   n

News paper and TV ads

45

50 40 30 20

20

Words of mouth

25 10

10

Dealeer 

0 sources

Promotional campaign

Every person collects some information before buying a car about its features, company and other things. So this question was aimed to know k now about their information gathering. 45 people said they gathered information from words of mouth. W hile 25 people aid they collect information from Dealer itself.

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Qu.-6 Are you satisfied with your car? 25 20

20 15 10 5

10

Strongly satisfied

10

satisfied

5 555

5 2

3 111

5555 3

2 2

can't say dissatisfied

0

strongly Dissatisfied

Maruti zen

Santro xing

Fiat palio

Wagon R

indica

I have done this analysis on every car. In the case of Maruti Zen, 5, 10, 5,5and 5 people were strongly satisfied, satisfied, can’t say,

dissatisfied and strongly satisfied respectively. In the case of Hyundai Santro Xing, 10 and 20  people were strongly satisfied and satisfied respectively. respectively. In the case of fiat Palio, 2 1, 1 and 1  people were strongly satisfied satisfied, can’t say, dissatisfied and strongly satisfied respectively. In the case of Maruti Wagon R, 3,5,2,3 and 2 people p eople was strongly satisfied, satisfied, can’t say,

dissatisfied and strongly satisfied respectively. In the case of Tata indica, 5, 5, 5 and 5 people were strongly satisfied, satisfied, can’t say, dissatisfied and strongly satisfied respectively

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Qu.-7 Rank your car on following attributes? attributes? I have done my analysis on each car.

Hyundai Santro

  e    l   p   o   e   p   e    h    t    f   o  .   o   n

25 20

20

15 10 5

15 10

15

20 15 15

10 5

20

10

10

15 15 10

5

0

15 10 5

Strongly satisfied

satisfied

can't say

dissatisfied

strongly Dissatisfied

On the price factor 10, 15 and 5 Santro owner were strongly satisfied, satisfied and cant say respectively. On the comfort factor 15, 10 and 5 Santro owner were strongly satisfied, satisfied and cant say respectively. Its means most of Santro San tro driver was happy with Santro. 20 and 10 Santro owners were strongly satisfied and satisfied respectively with the performance of Acs. On the Fuel efficiency factor 20 and10 Santro owners were satisfied and can’t say respectively. 15

and 5 Santro owner were strongly satisfied and in cant say position respectively respectively on the issue of maintenance cost. 20 and 10 Santro owners were strongly satisfied and satisfied respectively with the driving of the car. 15 and 15 Santro owners were strongly satisfied and satisfied respectively with the performance of Engine. On the availability of spare parts 10, 15 and 5 Santro owner were strongly satisfied, satisfied and can’t say respectively

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Qu-8. Have you come across any promotional event conducted by Hyundai during last one month?

(A) YES

(B) No Customer opinion

No. of customers

Yes

61

 No

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Total

100 Table No.15

No. of customers 70%

61%

60% 49%

50% 40%

No. of customers

30% 20% 10% 0% Yes

No

Fig. No. 15

From the table and graph above it can be seen that 61% of respondent’s come across promotion

of Hyundai  and 49% do not come across promotion of Hyundai.

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Qu-9. What more do you expect from your dealer? (A) Information about new cars (B) Information about service and mileage (C) Assistance regarding loans and insurance (D) Understanding customer needs

Expectations of customer

No. of customers

Information about service and mileage

68

Assistance regarding loans and insurance

8

Understanding customer needs

20

Information about new car

4

Total

100 Table. No.13

No. of customers 4% Information about service and milage

20%

Assistance regarding lones and insurance 8% 68%

Understanding customers needs Information about new car

Fig. No. 13

Most of the customers are expecting the information about service and mileage regarding the cars from the dealer. From the above analysis we come to know about the customer’s expectations and their post  purchase service demands from the dealer.

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Qu-10. What’s your opinion opinion on the price list of Hyundai cars?

(A) Affordable by common man (B) Affordable only by rich man (C) Can’t say Customer opinion on pricelist of

 No. of customers

Hyundai car Affordable by common man

30

Affordable by only rich man

60

Can’t say

10

Total

100 Table. No.11

No. of customers

10% 30% Affordable by common man Affordable by only rich man

60%

Can't say

Fig. No. 11

More than 80% of customers think that Hyundai cars are affordable only by rich men. These cars are too expensive for an economic/common man of the society.

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EVALUATION AND CONTROL

The company would evaluate and control the marketing process of all the four type:

1). Profitability: The final profit margin, return on net worth and the cost of advertising would be compared with proposed budget on timely basis and thus the control measure such as new sales  promotion scheme or additional discount would be offered.

2). Efficiency Control: The proposed budget would specify the expenditure to be incurred. Over a period of time management and marketing controller and which would Measure the efficiency of a strategy being taken by company would judge return on Investment on each scheme.

3). Annual Marketing Plan : The annual demand expected for the year has calculated which would be incurring used to calculated return on net worth. The top management would continuously compare the final output with the proposed budget. Any lagging would repair The control procedure to be taken

IF Rate of return on net worth